Energy-efficient buildings will be a central element of low-carbon cities, but there are many challenges to achieving energy efficiency in existing buildings. Local governments and the private sector are finding new ways to work together to advance energy efficiency – and discovering important lessons in the process. This webinar will explore how Kansas City, Missouri is supporting Property Assessed Clean Energy financing programs that are accelerating energy investments by residents and commercial building owners; lessons from investor-owned utility Duke Energy’s collaborations with city governments, and the utility’s new pilots designed to break down barriers to energy efficiency. This webinar is presented by the Alliance for a Sustainable Future, a joint initiative of The U.S. Conference of Mayors and the Center for Climate and Energy Solutions (C2ES).

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The ambitious goals for renewable energy adoption raise the question of how city governments will make the transition from traditional fossil fuels. While several options are available to cities seeking a cleaner electricity mix (e.g., on-site renewable energy generation, green tariffs, and community choice aggregation), this brief describes an option increasingly popular among corporations and municipalities: the power purchase agreement (PPA). In 2016, 210 projects in the United States added 7.9 million MWh of renewable electricity in the United States under new PPAs. For context, the entire state of Rhode Island consumed just over 8.5 million MWh of electricity in 2015.

This brief provides an overview of PPAs, introduces important considerations for cities, and provides examples of PPAs used by municipalities. Finally, it offers additional resources that can provide cities with more details and options.

Key Takeaways

• Cities across the U.S. are increasingly using PPAs as a method of procuring renewable electricity in order to reduce their greenhouse gas emissions footprint.
• By locking in a long term electricity price, PPAs can help cities avoid potential price fluctuations and streamline budgetary planning.
• Cities can choose from different types of PPAs and financing structures to find a solution that best helps them attain their sustainability goals.

The post Buying Clean Electricity: How Cities Benefit from Power Purchase Agreements appeared first on Center for Climate and Energy Solutions.

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